| Experienced management and established operational track record
SOPL started operations in 2016 in dealing with fashion imitation jeweLlery and has inhouse merchandising and designing and deals through online sales partners by its own website and through its offline sales channels. The promoter Mr. Bharat Jatanraj Navlakha have a decade of experience in the imitation jeweLlery industry. This has helped the company in maintaining good business over online platforms. The company is an online first brand retailing across al the major e commerce & quick commerce marketplaces like Amazon, Flipkart, Myntra, Nykaa, Ajio, Naaptol, Swiggy, Zepto etc. team believes that the business wilL continue to benefit from experienced management over the medium term.
Improving operating scale and profitability
The company has shown improving trend in the topline growth over the past three years. The revenue of the company improved and stood at Rs. 189.55 Cr. in FY26 as compared to Rs. 145.72 Cr. in FY25 showing ~30 per cent growth. The growth is on account of increase in demand during September and November FY26 due to better demand forecasting before festive season, early inventory placement and order fulfilment. Further, the company also derived benefit from increasing customer migration from offline to online channels. (~95 per cent of sales is contributed through online platforms). The profitability margins also improved with EBITDA margin at 13.59 per cent in FY26 from 6.74 per cent in FY25. The improvement is mainly on account of decrease in selling expenses, wherein Commission expense reduced substantially – FY25 it was ~Rs. 9.55 Cr and it has come down to ~Rs. 1.32 Cr in FY26, on account of revision in contract terms with online platforms. Further the PAT margin also stood at 9.39 per cent inFY26 as compared to 2.48 per cent in FY25. Further, till July 2026, the company has booked the revenue of ~Rs. 68 Cr with EBITDA at ~Rs. 9.50 and PAT stood at Rs. 6 Cr. Acuite believes that the operating performance of the company is expected to improve steadily on the back of growing demand.
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| Moderate financial risk profile
The company’s financial risk profile remains moderate, marked by a moderate net worth, gearing and low coverage indicators. Tangible net worth increased to Rs. 85.61 Cr. as on March 31, 2026, from Rs.47.58 Cr. as on March 31, 2025, aided by accretion to reserves and capital infusion. The total debt stood at Rs. 74.22 Cr. in FY26 as compared to Rs. 45.23 Cr. in FY25. The total debt comprises of Rs. 9.75 Cr. long-term debt, Rs. 0.13 Cr. of USL, Rs. 53.58 Cr. of short- term debt and Rs. 10.76 Cr. of CPLTD. Gearing improved to 0.87 times as on March 31, 2026, from 0.95 times as on March 31, 2025. Further TOL/TNW improved marginally to 1.27 times as on March 31, 2026, as against 1.75 times as on March 31, 2025. Debt to EBITDA also stood at 2.78 times as on March 31, 2026, as against 4.60 times as on March 31, 2025. Debt protection metrics, however, remained low, with interest coverage ratio (ICR) at 3.14 times in FY2026 from 1.76 times in FY2025 and debt service coverage ratio (DSCR) stood at 1.16 times in FY2026 from 0.56 times in FY2025, primarily on account of high interest costs and elevated reliance on working capital borrowings. Acuite believes, the financial risk profile of the company would remain moderate on the back of the modest net worth and substantial debt obligations in the near terms.
Intensive Working Capital Operations
The working capital operations of the company remained intensive marked by high GCA which stood at 316 days as on as on 31st March 2026 against 289 days as on 31st March 2025. The inventory and debtor days of the company stood at 121 days and 155 days respectively as on 31st March 2026 against 83 days and 177 days respectively as on 31st March 2025. The increase in inventory days can be attributed to the accumulation of inventory which was maintained due to the management's forecast for seasonal demand of the products. On the other hand, the creditor days of the company stood at 61 days as on 31st March 2026 against 80 days as on 31st March 2025. Acuite believes that the company’s working capital operations would remain working capital intensive on the back of higher inventory holding.
Susceptibility of margins to input cost volatility, demand trends and working capital intensity
The company’s profitability remains susceptible to fluctuations in procurement costs, marketplace expenses and pricing pressures. Its trend-driven product portfolio and frequent SKU launches expose it to inventory obsolescence risk, while the extended credit cycle of marketplace partners results in sizeable debtors and working capital intensity. Sustained margin improvement will depend on effective demand forecasting, inventory management, platform mix and timely collections.
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